Cash Dividends SMMA 2014AR. SMMA 2014AR
PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
Fair Value Hierarchy The following table discloses the fair value hierarchy of consolidation financial assets:
Level 1 Level 2
Level 3 Total
Financial Assets Fair value through profit and loss
Shares and warrants 145,711
- -
145,711 Bonds
34,719 -
- 34,719
Units of mutual fund 2,994,323
4,447,611 -
7,441,934 Segregated funds net assets - Unit link
797,545 929,992
- 1,727,537
Available for sale
Placement with Bank Indonesia 1,749,388
- -
1,749,388 Shares
53,260 -
- 53,260
Units of mutual fund 6,629,792
- -
6,629,792 Bonds
2,587,695 -
50,069 2,637,764
Sharia securities - fair value
Shares 11,566
- -
11,566 Units of mutual fund
76,954 -
- 76,954
Bonds 73,007
- -
73,007
Held to Maturity
Bonds 69,726
- -
69,726
Total Financial Assets 15,223,686
5,377,603 50,069
20,651,358
Financial Liabilities Fair value through profit and loss
Segregated funds contract liabilities - Unit link 1,525,012
- -
1,525,012 Derivative liability
- 63
- 63
Total Financial Liability
1,525,012 63
- 1,525,075
2014
Level 1 Level 2
Level 3 Total
Financial Assets Fair value through profit and loss
Shares and warrants 661,283
- -
661,283 Bonds
20,000 -
- 20,000
Units of mutual fund 3,611,436
3,798,474 -
7,409,910 Segregated funds net assets - Unit link
654,600 1,764,251
- 2,418,851
Derivative assets -
28 -
28
Available for sale
Placement with Bank Indonesia 1,142,439
- -
1,142,439 Shares
553,537 -
- 553,537
Units of mutual fund 1,571,472
- -
1,571,472 Bonds
6,154,172 -
1,009,624 7,163,796
Sharia securities - fair value
Shares 11,381
- -
11,381 Units of mutual fund
31,496 -
- 31,496
Bonds 123,696
- -
123,696
Total Financial Assets 14,535,512
5,562,753 1,009,624
21,107,889
Financial Liabilities Fair value through profit and loss
Segregated funds contract liabilities - Unit link 1,912,482
- -
1,912,482 2013
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly
available from stock exchange, securities trader, broker, industry group pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transaction
on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1
comprise primarily Indonesia Stock Exchange IDX equity investments in shares and warrants, bonds investment and units of mutual fund investment classified as available-for-sale or trading
securities and segregated funds net assets - Unit link.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market
data where it is available and rely as little as possible on entity’s specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in Level 2. Instruments included in Level 2 comprise derivative assets, units of mutual fund and segregated funds contract liabilities - unit link.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Instruments included in Level 3 comprise of certain bonds.
Fair value of short term investments in securities shares that are traded in Indonesia Stock Exchange, bonds and units of mutual fund and segregated funds net assets - unit link based on
fair value, net asset value published was calculated by investment manager.
Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest
rate. There is no reliable basis for measuring the fair value of investment in shares Note 17, thus, the
investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less
than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount.
The fair value of loan received and securities issued are determined based on discounted cash flow analysis using market interest rates.
Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia Intervention, export bill receivable, securities purchased under
agreements to resell, receivables from brokers, other assets security deposits, securities sold under agreement to repurchase, payables to brokers, accrued expenses, and other liabilities
approximates the carrying value due to short term nature of transactions.